COOK COUNTY HEALTH & HOSPITALS SYSTEM

Transcription

1 COOK COUNTY HEALTH & HOSPITALS SYSTEM FY2019 Proposed Budget and Financial Plan August, 2018 Dr. Jay Shannon, CEO Doug Elwell, Deputy CEO for Finance & Strategy Ekerete Akpan, CFO

2 2 FY2018 Accomplishments

3 FY2018 Major Accomplishments Transition of more than 200,000 new members into CountyCare. U.S. District Court dissolved the 2010 Consent Decree involving Cermak Health Services. Stroger Hospital re-designated as a Level III Perinatal Center. Stroger Hospital s Burn Unit reaccredited by the American Burn Association. U.S. News and World Report recognized Stroger Hospital with its highest rating for heart failure care in their annual Best Hospital ranking. CCHHS hospitals and outpatient centers achieved Health Information Management Systems Society (HIMSS) Stage 7 in Only 6.4% of providers in the US have reached Stage 7. Stroger Hospital recertified as Advanced Primary Stroke Center by The Joint Commission. 3

4 FY2018 Major Accomplishments Notable capital equipment, clinical, revenue cycle and facility improvements investments* include; o $17.9M in medical equipment o $9.6M in Health Information Technology equipment and upgrades o $8.7M for fixtures & buildouts of new professional office building o $0.4M in safety and communications equipment at Cermak Health Services o $8.7M in revenue cycle systems and technology upgrades 4 *Capital /equipment and facility improvement investment amounts represent full assets values already financed or in advanced planning stages for financing by end of FY2018 through leases and other mechanisms which typically requires a 3 to 5 year payment period

5 5 FY2019 Proposed Budget

6 FY2019 Proposed Budget Executive Summary The FY2019 annual budget proposal moves CCHHS into the final year of Impact The FY2019 budget: Reflects organizational focus on quality improvements, patient satisfaction and regulatory compliance; Continues the strategic development of service lines to grow and compete while meeting healthcare needs of Cook County residents; Continues efforts to build and integrate clinical and managed care capacity across all care settings; and Supports organizational capacity to improve clinical documentation, billing, coding, collections and other revenue cycle activities. 6

7 7 FY2019 Initiatives Deliver High Quality Care Establish outpatient dialysis services at Provident Increase surgery services at Stroger and Provident Grow outpatient services by maximizing health center access Expand community-based dental services Invest in care coordination to improve patient outcomes and health Establish mental health services at Juvenile Temporary Detention Center and for court-involved youth Grow to Serve and Compete Sustain and grow CountyCare membership by 3% Increase CountyCare members use of CCHHS services Opening of new/renovated facilities will increase capacity to drive volumes Expand services offered in community centers for women and children Continue building behavioral health services/capacity Foster Fiscal Stewardship Sustain financial position including level tax allocation at $101.9M Invest in care coordination to improve patient care and better control costs Continually improve billing and collection processes Conduct operational reviews for efficiencies Reduce overtime and registry usage Monitor critical contracts Prioritize strategic initiatives Build on success in securing grant resources

8 FY2019 Initiatives Invest in Resources Replace aging capital equipment Improve employee engagement through training investments, leadership rounding, annual performance evaluation Partner with labor, developing shared vision for organizational success with a patient-centered focus Leverage Valuable Assets Leverage systems such as Time and Attendance to improve management Impact Social Determinants of Health Expand Food as Medicine and Women, Infants and Children (WIC) services at community health centers Supportive housing for medically-at-risk populations Expand evidence-based practices and innovations in addressing substance use disorders Advocate for Patients Provide improved health care for the uninsured and justice-involved population Protect critical federal/state programs including the Affordable Care Act, 340B Drug Discount Program, Medicaid coverage and rates 8

9 FY2019 Proposed Budget Revenue Drivers Increase in CountyCare membership to 345,000 Increases due to initiatives in the following areas: o Dialysis services o Surgery at Provident and Stroger o New larger primary care clinics in the community o Professional Office Building on Central Campus o Specialists physicians in the community o Provident services o Care Coordination Professional and facility billing improvements 9

10 FY2019 Proposed Budget Expense Drivers Increase in CountyCare membership Insourcing where costs can be reduced and quality enhanced Wage increases, driven by negotiated salary changes Mental health services at the Juvenile Temporary Detention Center Pharmacy and medical supplies usage and inflation Health Information Technology investments Investments in revenue cycle Moving from Oak Forest campus assumed by end of 1 st quarter

11 FY 2018 Volume Monthly Average Monthly Projection Difference Visit Type FY 2016 FY 2017 FY 2018 * FY 2019 FY19 v. FY18 Surgical Cases 1,238 1,233 1,245 1,320 6% Emergency Visits 12,901 12,074 12,037 12,750 6% Primary Care Visits 18,436 18,482 18,144 19,051 5% Specialty Care Visits 20,230 20,143 21,325 22,391 5% Deliveries % 11 *based on actuals for first 7 months of FY2018

12 12 FY Budget ( in Millions) *Cook County Allocation is $101.9M total, $29.2 million of which goes to pension contribution FY 2018 Adj. App. FY 2018 Proj. YE NOTE: Some numbers are rounded to nearest million for display purposes and could result in small arithmetical differences. FY 2019 Proposed Revenues CCHHS Revenue $2,478 $2,479 $2,619 Cook County Allocation $102 $102 $102 County Pension Contribution $129 $129 $129 Total Available Funds $2,708 $2,709 $2,849 Expenses Hospital-Based Services $909 $924 $1,023 CountyCare $1,531 $1,531 $1,572 Health Administration $79 $76 $68 Ambulatory Services $175 $168 $165 Correctional Health Services $119 $115 $125 Public Health Services $16 $16 $17 Total Expenditures $2,829 $2,830 $2,970 Accrual Basis Net Surplus/ (Deficit) ($120) ($120) ($120) Non-Cash Expenditures Pension $86 $86 $86 Depreciation $34 $34 $34 Self Insurance $0 $0 $0 Cash Basis Net Surplus/ (Deficit) ($0) $0 ($0) Finance Committee I August 25, 2017

13 FY2019 Proposed CountyCare Financial Summary (in millions) ACA Adult FHP SPD MLTSS/LTSS /IMD TOTAL Projected 2019 Membership 82, ,000 31,000 10, ,000 Revenue (in millions) $517 $505 $511 $288 $1,822 Medical Expense (CCHHS) Medical Expense (Network) ,455 Administrative Expense Total Expenses (in millions) $517 $505 $511 $284 $1,817 Profit/(Loss) $0 $0 $1 $4 $5 Total CCHHS Contribution $137 $25 $118 $3.7 $ NOTE: Some numbers are rounded to nearest million for display purposes and could result in small arithmetical differences.

14 FY2019 Proposed External Revenue by Source (in millions) Patient Fees BIPA DSH CountyCare Others 14 DSH: Disproportionate Share Hospital Payments BIPA: Benefits Improvement and Protection Act Payments NOTE: Some numbers are rounded to nearest million for display purposes and could result in small arithmetical differences.

15 Cook County Pension, Debt Service & Operating Allocation (in millions) The FY18 tax allocation toward CCHHS operations is $102M. The CCHHS FY19 budget will anticipate a level tax allocation from the County of $102M. CCHHS does not anticipate requesting additional County taxpayer support for operating funds in FY * Operating Tax Allocation, Pension and Debt Service assumed at FY2018 level; Pension includes statutory and legacy pension payments NOTE: Some numbers are rounded to nearest million for display purposes and could result in small arithmetical differences.

16 CCHHS Uncompensated Care* (in millions) FY2013 FY2014 FY2015 FY2016 FY2017 FY2018** FY2019** Charity Care Cost Bad Debt Cost 16 * Uncompensated Care is Charity Care + Bad Debt at cost ** FY2018 projected **FY2019 projected NOTE: Some numbers are rounded to nearest million for display purposes and could result in small arithmetical differences.

17 Insurance Status by Unique Patients 48% 52% 40% 60% 65% 66% 35% 34% 39% 61% FY2013 FY2014 FY2015 FY2016 FY2017 Uninsured Insured 17

18 Full Time Equivalent Position Count 2018 Adopted 2019 Proposed FY2019 vs FY2018 Percent Change Health Fund Ambulatory Services % Correctional Health Services % CountyCare and Integrated Care % Health Administration % Hospital-Based Services 4, , % Public Health Services % Grand Total 6, , % 18 NOTE: Some numbers are rounded for display purposes and could result in small arithmetical differences.

19 FY2019 Proposed Budget Key Take-Aways The FY 2019 annual budget proposal aligns with Impact 2020, however, success will depend on: Growth in key volume indicators; Internal capture of CountyCare and other Managed Care business; Improvement in revenue cycle; Flexible staffing and management of overtime and registry utilization; CountyCare membership retention within the plan and state capitation rates. 19

20 20 FY Projections

21 21 FY Budget Projections (in Millions) FY 2018 Proj. YE FY 2019 Proposed FY 2020 Projected FY 2021 Projected Revenues CCHHS Revenue $2,479 $2,619 $2,697 $2,778 Cook County Allocation $102 $102 $102 $102 County Pension Contribution $129 $129 $102 $92 Total Available Funds $2,709 $2,849 $2,901 $2,972 Expenses Hospital-Based Services $924 $1,023 $1,057 $1,070 CountyCare $1,531 $1,572 $1,566 $1,610 Health Administration $76 $68 $70 $72 Ambulatory Services $168 $165 $180 $190 Correctional Health Services $115 $125 $128 $130 Public Health Services $16 $17 $18 $19 Total Expenditures $2,830 $2,970 $3,019 $3,090 Accrual Basis Net Surplus/ (Deficit) ($120) ($120) ($118) ($118) Non-Cash Expenditures Pension $86 $86 $86 $86 Depreciation $34 $34 $34 $34 Self Insurance $0 $0 $0 $0 Cash Basis Net Surplus/ (Deficit) $0 ($0) $2 $2 NOTE: Some numbers are rounded for display purposes and could result in small arithmetical differences.

22 Budget Calendar June 19, 2018 President s FY2018/2019 Preliminary Budget Forecast Released July 12, 2018 July 20, 2018 July 23 25, 2018 August 24, 2018 August 28-29, 2018 August 31, 2018 September 12, 2018 October, 2018 Oct/Nov, 2018 President s Preliminary Forecast Public Hearing CCHHS Finance Committee Meeting Budget Framework Introduced Cook County Finance Committee Meeting Mid-Year Budget Hearings CCHHS Finance Committee Meeting FY2019 Budget Request for Approval CCHHS Budget Public Hearings CCHHS Board Meeting FY2019 Budget Request for Approval Cook County Board Meeting CCHHS FY2019 Proposed Preliminary Budget Introduced & Approved* (for inclusion in Executive Budget Recommendation) President s FY2019 Executive Budget Recommendation Introduced Cook County Public Hearings, Agency & Department Budget Review Meetings Proposed Amendments, Annual Appropriation Bill Adopted 22

23 23 Questions?

24 APPENDIX

25 Insurance Status By Charges 54% 46% 63% 65% 63% 62% 61% 37% 35% 37% 38% 39% FY2013 FY2014 FY2015 FY2016 FY2017 FY2018* Insured Uninsured 25 FY2013 thru FY2017 based on audited financials statement's * FY2018 Unaudited and projected based on first 7 months of Fiscal year.